Federal Subsidized Stafford Loan Program

Federal Unsubsidized Loan Program

Alternative Loan Programs

2005-2006 Private Loan Preferred Lender Chart

Federal Subsidized Stafford Loan Program
The Subsidized Stafford Loan is awarded based on financial need. The annual amount of this award may not exceed $8,500 (to an aggregate of $65,500). No interest accrues on the loan while the student is enrolled at least half-time, during the six-month grace period following the last date of attendance and during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. Interest rates are variable and are capped at 8.25%. 

Federal Unsubsidized Loan Program
The Unsubsidized Stafford Loan is not based on financial need. Interest will accrue from the time the loan is disbursed until it is paid in full. Interest accumulated while in school or during other periods of nonpayment is capitalized (added to the principal amount of the loan), unless a student opts to make interest payments while in school. Students may borrow up to $18,500 less any amount borrowed through the Federal Subsidized Stafford Loan Program during an academic year (up to an aggregate of $138,500 combined Subsidized and Unsubsidized Stafford Loans). Interest rates are variable, annually adjusted and current interest rates are the same as for Subsidized Stafford Loans.

Alternative Loan Programs
Often, the financial aid available from federal, state and institutional sources is not enough to meet the total cost of attendance. Alternative loan programs provide opportunities to borrow to meet these costs. The annual maximum loan limits for most alternative loans is the difference between the cost of attendance and any other financial aid received for the academic year. Unlike the federal loan programs, alternative loan programs are consumer loans for students and therefore require borrowers to demonstrate good credit histories as part of the eligibility requirements.  The Office of Financial Aid strongly suggests that you get a copy of your credit report from each of the three credit reporting agencies prior to applying for an alternative loan.

Credit Reporting Agencies:

Equifax  

800.685.1111 

www.equifax.com

Experian   

888.397.3742 

www.experian.com

Trans Union Credit Corp. 

800.888.4213

www.tuc.com

Preferred Lender Chart